Ocean Spray Announces 2012 Financial Results

Ocean Spray Cranberries, Inc., a grower-owned agricultural cooperative, today released its fiscal 2012 financial results, which included the highest net sales in the company’s history and strong growth in net proceeds paid to its growers.

Highlights of the 2012 fiscal year ending August 31st included:

·         Net sales of $1.66 billion, the highest in Ocean Spray’s history, up 3.2 percent from 2011’s $1.61 billion.

·         Net proceeds of $338.7 million, up 5.3 percent from 2011’s $321.7 million; operating profits grew 9.0 percent.

·         Strong returns of $63.11 per cranberry barrel for Ocean Spray’s “A” Pool Grower-Owners, providing a premium to the cranberry commodity markets in excess of $30 per barrel for the second straight year. (These results are for the 2010 cranberry crop.  Sales from the crop closed in February 2012.)

·         Record-high returns for Grapefruit Growers of $1.71 per fruit solid pound, marking the seventh consecutive year of above cash-market returns. (These results are for the fruit that was harvested in the 2010 to 2011 season. Sales from the crop closed in July 2012.)

Randy Papadellis, Ocean Spray’s President and Chief Executive Officer, said: “Our fiscal 2012 financial results reflect strong performance amid a sluggish economy and volatile marketplace and continue a trend–over the past four years Ocean Spray has delivered record-highs in sales and profits, as well as in returns for our grower-owners.”

These positive results were driven by the strength of the Ocean Spray brand, continued product innovation, in-store marketing and promotions, ongoing focus on operating efficiency and risk management and the pursuit of strategic business partnerships.

“For the past decade, Ocean Spray has been pursuing business initiatives against two goals: increasing the value of our members’ farms and increasing the value of the company itself,” added Papadellis. “I’m pleased to say that, while we’ve faced many roadblocks, we’ve been able to achieve both goals while meeting consumer preferences for high quality food and beverage products.

Ocean Spray achieved a number of business advancements in Fiscal Year 2012, including:

·         Forming a long-term business partnership with PepsiCo to bring Ocean Spray beverages to Latin America.

·         Retaining business momentum in Europe through Ocean Spray’s Coca-Cola Enterprises (U.K., France). In the United Kingdom, Ocean Spray’s largest market outside North America, Ocean Spray’s 52-week beverage consumption is up 4.9 percent.

·         Expanding channel presence in North America through the introduction of a co-branded 100% cranberry beverage with Costco.

·         Launching “the year of the cherry” in North America with new cherry juice blends of cranberry and grapefruit juice.

·         Beginning construction on a new $135 million beverage manufacturing facility in Pennsylvania. When completed early in 2014, it will be one of the most efficient hot-fill manufacturing facilities in the world.

·         Adding a new dried cranberry manufacturing line at Ocean Spray’s facility in Middleboro, Mass. When fully operational, Ocean Spray will have the capacity to produce about 200 million pounds of dried cranberries per year across all of its facilities.

About Ocean Spray
Ocean Spray is an agricultural cooperative owned by more than 700 cranberry growers in Massachusetts, Wisconsin, New Jersey, Oregon, Washington, British Columbia, and other parts of Canada as well as 35 Florida grapefruit growers. Ocean Spray was formed over 80 years ago by three cranberry growers from Massachusetts and New Jersey. Florida grapefruit growers joined the Cooperative in 1976. Ocean Spray is North America’s leading producer of bottled juices and juice drinks, and has been the best-selling brand name in the bottled juice category since 1981. Ocean Spray posted fiscal 2012 gross sales of $2.2 billion and net proceeds of $338 million.